BE Obj. 4.01-03 Practice Questions

Finance is the business function that involves managing

• information

• money

• marketing

• production

The goals of the finance function are to ensure profitability and

• advertise products

• manufacture raw materials

• give out information

• reduce risks

Accounting is distinct from finance because its main focus is on

• recordkeeping activities

• money management decisions

• administration of assets

• acquisition of funds

The finance function ensures that the company’s financial goals are

• acceptable to the marketing department.            

• related to product development

• easy to accomplish

• in line with organizational priorities

Money the business owes is known as

• equity

• assets

• accounts payable

• accounts receivable

Money the business owed is known as

• equity

• assets

• accounts payable

• accounts receivable

To keep communication flowing with other departments, the finance function depends on

• accounts receivable

• information systems

• marketing

• production

Which of the following is a capital investment decision:

• How to manage cash flow

• How to handle accounts payable

• How to finance investments

• How to manage inventory

Determining which projects a business should invest in is known as

• return on capital

• the cash conversion cycle

• capital structuring

• capital budgeting

                Selling shares in the company to raise money for a new venture is referred to as ___________ funding.

• equity

• dividend

• debt

• accounts payable